Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business reporter

It is the last over of the cricket match, with India needing 17 go to win versus Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged male is viewing the game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.

He has actually made more than 10 employ the last thirty minutes - not to talk about the match however to keep revising his bet.

Five minutes previously his cash was on Australia, and now as the Indian batsman prepares to deal with the last over he's altered his mind.

"I believe India is winning, make the change," he informs his bookie on the phone.

And a few minutes later on his prediction becomes a reality, as India wins the match in a nail-biting surface.

"I have made $200 today," he says with a childish glee.

For more than three years he's been sports betting on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

Other than horse racing, sports betting of any kind is not allowed India. Despite that, illegal wagering syndicates thrive in the country.

'Black money'
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According to the Doha-based International Centre for sports betting Security, India's prohibited sports betting market deserves some $150bn a year. And much of that sports betting money is directed towards cricket.

With no legal opportunity, punters put bets using their phones by making calls to bookies. Gamblers can bet on anything associated to the match, from who is winning to the greatest individual run scorer.

Most of these deals involve so-called "black money", which is cash not stated to the taxman.

The 1867 Public Gambling Act bars any kind of sports betting in India, however unlike in the US which has a law restricting web sports betting, there is nothing similar here.

And offshore sports betting companies are using this loophole to lure Indians. Despite the fact that there are no online sports betting operators based out of India, a lot individuals have signed up accounts with overseas firms.

"Legally you can escape [with this], as the law is ambiguous for online gaming," says Mumbai- based lawyer HP Ranina.

But in spite of this, it is "offline gambling", done through telephone call which control the market.

Calls for legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel designated by India's Supreme Court proposed the concept, stating it would assist secure down on corruption in the country's favourite sport.
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The Justice RM Lodha Commission was set up to suggest changes in the performance of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

Two franchises have actually been prohibited for 2 years after some players and team authorities were condemned of repairing parts of the match at the wish of bookmakers.

The panel likewise argues that legalised sports betting will generate tax incomes for the exchequer that might total up to $2bn a year.
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Even bettors feel that legalising sports betting is a relocation in the right instructions.

"I don't mind paying some cash out my earnings, as long as I can bet openly," states our cricket gambler.

It would also open a huge company opportunity for licensed bookmakers and international online wagering companies to set up operations in India.
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And it would assist limit match fixing in cricket and other sports betting, argue lots of, by assisting make transactions associated with gambling more transparent.

"If you work along with wagering business, you will have an extremely efficient method of marking out match repairing," states George Oborne, who runs a mock sports betting site, India Bet.
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But lots of likewise believe, that the taxes imposed on the gambler and the bookie will have to be sensible to make it appealing enough for them to bet lawfully.

However, there are constraints.

"Definitely there will be illegal wagering since (some) people wouldn't wish to leave an audit path by getting in the white market," says Mr Oborne.

He adds that people who use unaccounted cash to put big bets will never ever bet lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be required to develop a new law, and politically this will be a hard concept to offer.
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"Although lots of individuals are included in some sort of sports betting - it's still a controversial issue for many," says our unnamed punter.

And given that India has a federal structural - each state will need to likewise pass a separate law to legalise sports betting in their territory.

"The procedure is so long and tricky that it will take years," says Mr Ranina."That's why, we are negative about this becoming a truth anytime quickly."

Yet with the concept having been backed by an official panel for the very first time, at least an argument has actually ignited around a topic - which up until now was thought about a taboo.
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